European bank commits to making money up to 2% more expensive to curb runaway inflation
The European Central Bank (ECB) announced an interest rate hike of 0.75 points on Thursday, pushing the price of money to 2%. This is the entity’s third increase of this type, after the gains in July and September, and is another step in its roadmap to reduce inflation, which stood at 9.9% in the eurozone in September.
Keeping prices under control has become the ECB’s main objective after reaching record levels following the rise in food and energy prices since the start of the Russian invasion of Ukraine.
Thursday’s decision represents “significant progress” in the normalization of monetary policy, says the ECB, which “intends to raise interest rates further” to ensure inflation stays at 2% over the medium term. The entity’s board of directors will base its future actions on the evolution of inflation and the economy, which cooled down in the second half of the year.
Source: La Verdad
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